Wednesday, January 15, 2014: A set of study reports released by the India Electronic and Semiconductor Association (IESA), the premier trade body representing Indian electronic system design and manufacturing (ESDM) industry claims that currently, 65 per cent of demand for electronic products is met by imports in the country, and even the 35 per cent left which is manufactured in India, is mainly ‘low value added manufacturing’. However, the Indian ESDM industry is expected to grow at a compound annual growth rate (CAGR) of 9.9 per cent to reach $ 94.2 billion by 2015, that being more than twice the growth rate of the global ESDM market, but does the current scenario sound alarming, to an extent yes.
The IESA-Frost & Sullivan report analysed the growth and opportunity in the Indian ESDM market and presented a detailed product wise SWOT analysis of 25 high priority products that account for nearly 82 per cent of the overall electronics consumption in India. Of these, the top five product categories alone account for 60 per cent of the overall electronic consumption. Mobile phones lead the pack accounting for 38.85 per cent. Further, 69 per cent of local consumption of these top 25 priority products is met through imports.
Meanwhile, ‘Disability identification study’ with Ernst & Young examined key macro issues impairing the growth of electronics manufacturing in the country focusing on different electronic segments such as consumer electronics, IT systems and hardware and industrial electronics.
“With the clear recommendations in this report, it’s time to adopt necessary changes to boost domestic product development and manufacturing. Ensuring speedy implementation of the new initiatives and taking corrective measures on certain key irritants will go a long way in building confidence ushering manufacturing investments in the country.” Sanjeev Keskar, chairman, IESA was quoted saying by Business Standard.
